Gree Electric Appliance Profit Model And Its Financial Evaluation

The profit model plays an important role in the survival and development of enterprises.In recent years,with the influx of foreign home appliance brands and the rising consumption level of China's residents,the domestic appliance consumer market has become saturated to a certain extent,and the competition in the home appliance industry has become hot.As an industry with high technical similarity and similar product similarity,the home appliance industry relies only on large-scale expansion and price wars,and cannot solve the problems and contradictions in the growth of enterprises from the root cause,but will make enterprises more confused.The current enterprise competition is no longer a simple competition for product services,but a contest between the advantages and disadvantages of corporate profit models.The management philosophy,market share and development of the company are no longer the basis for judging the success of a company.The quality of the profit model has become a new criterion.As a leading enterprise in home appliance enterprises,Gree Electric Appliance Co.,Ltd.has shown a relatively stable development trend in the development of the company for more than 20 years,thanks to its profit model.Through the research and analysis of Gree's profit model,it can provide reference for the construction of the profit model of China's home appliance enterprises,and also contribute to the sustainable and efficient development of the home appliance industry.This paper combines the theory of profit model with actual cases.Firstly,it introduces the research background,significance and methods,and expounds the possible contributions.Secondly,it expounds the relevant theoretical basis and literature review.It also expounds the overall situation of China's household electrical appliance industry,the internal value chain of home appliance enterprises and household appliances.After the change of the industry profit model,according to the actual situation of Gree Electric Appliances,the profit model of Gree Electric Appliance was analyzed from the perspective of the five elements that constitute the profit model.After that,through comparative analysis of Gree Electric and its competitors Haier,Midea's financial evaluation indicators,financial evaluation of its profit model;then comprehensive analysis of the above,summarizing the advantages and disadvantages of the current profit model of Gree Electric,and suggesting optimization;finally pointed out The limitations of this paper.